BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SCA 8
          Author:   Maldonado (R)
          Amended:  2/19/09
          Vote:     27

           
          WITHOUT REFERENCE TO COMMITTEE OR FILE


           SUBJECT  :    State officer:  salary increases

           SOURCE  :     Author


           DIGEST  :    This Constitutional Amendment prohibits the  
          California Citizens Compensation Commission from adopting  
          in a fiscal year a resolution which increases the salary of  
          Members of the Legislature or other state officers if the  
          Department of Finance has determined, based on General Fund  
          revenues and expenditures, that there exists an operating  
          deficit in that fiscal year.  As a matter of clarification,  
          this amendment also specifies that the Commission may  
          adjust the salaries and benefits of these officials by  
          increasing, decreasing, or maintaining them for a  
          particular fiscal year.

           ANALYSIS  :    Existing law directs the California Citizens  
          Compensation Commission to establish the annual salary and  
          the medical, dental, insurance, and other similar benefits  
          for Members of the Legislature, Governor, Lieutenant  
          Governor, Attorney General, Secretary of State, Controller,  
          Treasurer, Insurance Commissioner, Superintendent of Public  
          Instruction, and members of the Board of Equalization.
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          Existing law does not require the Commission to take the  
          state's overall fiscal "health" into consideration when  
          establishing these annual salaries and benefits.

          Existing law provides that in establishing or adjusting the  
          annual salary and benefits, the Commission must consider  
          the following:

             A.    The amount of time directly or indirectly  
                related to the performance of the duties,  
                functions, and services of a state officer.

             B.    The annual salary and benefits for other elected  
                and appointed officers and officials in California  
                with comparable responsibilities, the judiciary,  
                and, to the extent feasible, the private sector,  
                with the understanding that state officers do not  
                receive compensation at the same levels as  
                individuals in the private sector with comparable  
                experience and responsibilities.

             C.    The responsibility and scope of authority of the  
                entity in which the state officer serves.

          SCA 8 prohibits the Commission from increasing the salary  
          of any state officer if the Legislative Analyst has  
          determined, based on General Fund revenues and  
          expenditures, that there exists an operating deficit in  
          that fiscal year.  SCA 8 also clarifies that the Commission  
          may adjust the salaries and benefits of state officials by  
          increasing, decreasing, or maintaining them for a specific  
          fiscal year.

           Background

           The California Citizens Compensation Commission was created  
          by Proposition 112, which was placed on the ballot by the  
          Legislature and approved by the voters in June of 1990.   
          Proposition 112 also prohibited honoraria and limited gifts  
          for elected state officers. 

          The Commission consists of seven members, all of which are  
          appointed by the Governor for overlapping six-year terms,  







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          with the following background requirements:  (1) an  
          executive of a major corporation incorporated in  
          California; (2) a small-business owner;  (3) two officers  
          or members of a labor organization; (4) a person with  
          expertise in compensation (i.e. an economist, market  
          researcher or personnel manager); (5) a member of a  
          non-profit public interest organization; (6) person who is  
          representative of the general population (i.e. a retiree, a  
          homemaker or a person of median income).

          The Commissioners must meet by June 30 of each year to  
          adjust the salaries and benefits for all elected state  
          officers, to be effective on a December-to-December basis.   
          The Commission does not decide per diem.  The California  
          Victim Compensation and Government Claims Board (formerly  
          known as the Board of Control) sets per diem.  The  
          Commission also does not have jurisdiction over retirement  
          benefits.  The California Public Employees Retirement  
          System administers the retirement benefits for elected  
          State officers who still receive them.  Under Proposition  
          140 of 1990, members entering the Legislature on or after  
          1990 do not receive State retirement benefits.

          The Department of Personnel Administration's website listed  
          the following summary of recent Commission actions:

             A.    On April 12, 2001, the Commission met and voted  
                not to change salaries and benefits.

             B.    On March 14, 2002, the Commission met and voted  
                not to change salaries and benefits.

             C.    On June 30, 2003, the Commission met and voted  
                not to change salaries and benefits.

             D.    On May 21, 2004, the Commission met and voted  
                not to change salaries and benefits.

             E.    On May 23, 2005, the Commission met and voted  
                to increase legislators' salaries 12 percent.

             F.    On June 23, 2006, the Commission met and voted  
                to increase the salaries for Governor, Lt.  
                Governor, Attorney General, Secretary of State,  







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                Controller, Treasurer, Superintendent of Public  
                Instruction, Insurance Commissioner, and Board of  
                Equalization members by 18 percent.  The  
                Commission voted to increase salaries for all  
                members of the Legislature by two percent.

             G.    On June 18, 2007, the Commission met and voted  
                to provide a five percent salary increase for the  
                Attorney General and Superintendent of Public  
                Instruction and a two and three-quarter percent  
                increase for all other offices listed.

             H.    On April 22, 2008, the Commission met but did  
                not vote.  The Commission decided to meet again  
                before June 30 to vote on changes to salaries and  
                benefits, if any.

          A similar amendment was SCA 23 (Maldonado), which failed  
          passage in the Senate Election, Reapportionment and  
          Constitutional Amendment Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          DLW:do  2/18/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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